An enterprise produces and sells Item A. The selling price of this item, regardless of the size of the sales, is 20.00 per unit. Normal production and sales are 10,000 units per year.

For 2012, production was estimated at 8,000 units and sales at 9,000 units.

The result budgeted for 2012 is calculated as follows:

Sales proceeds 180,000

af: integral cost of units sold 121,500

sales result 58,500

a production department result 9,000

af occupancy sales department result 2,000-

Profit 47500

a) calculated the total annual constant cost of production

b) calculate the total annual constant selling costs

c) calculate the variable costs per unit of product

d) calculate the expected profit for 2012 according to the direct costing method

Sum 3

Tour operator Fouyonghas the following information about a trip to China for next year:

The normal occupancy is 2,250 package holidays.

The transport costs are 2,700,000 for KLM charter for 2,250 package holidays.

The stay takes place in hotels. Accommodation has been purchased on the basis of a guarantee contact for the amount of 1,400,000,-.

The overheads charged are 400,000,-.

The cost of transfers is 110,- per package holiday.

The costs of the excursions included in the trip are 130,- per package holiday.

A trip is sold through resellers; the commission is 12%

The selling price of the trip is 3,000,-.

The expected occupancy is 2,000 package holidays.

a.Calculate the full cost price for this China trip.

b.Calculate the break-even point (BEP).

c.Calculate the profit to be paid before tax.

d.At what average selling price would the pre-tax profit next year be 2% of sales?

e.The tour operator is considering arranging the purchase transport and stay differently. Transport can also be carried out by scheduled service. The cost of a ticket is 1,300,-. The property can be purchased on a separate basis. The costs are then680per package holiday. Now calculate the break-even point.